Save costs by eliminating and reducing the factors an industry competes on.
Value is raised by creating elements never before offered in the industry.
Value Innovation Costs Buyer Value
Red Ocean vs. Blue Ocean Strategy Align the whole system of a firm’s activities in pursuit of differentiation and low cost. Align the whole system of a firm’s activities with it’s strategic choice of differentiation or low cost. Break the value-cost trade-off. Make the value-cost trade-off. Capture and create new demand. Exploit existing demand. Make the competition irrelevant. Beat the competition. Create uncontested market space. Compete in existing market space. Blue Ocean Red Ocean
The Six Principles of Blue Ocean Strategy Management risk Build execution into strategy Organizational risk Overcome key organizational hurdles Execution principles Business model risk Get the strategic sequence right Scale risk Reach beyond existing demand Planning risk Focus on the big picture, not the numbers Search risk Reconstruct market boundaries Risk factor each principle attenuates Formulation principles
Strategy Canvas low high Industry Variables
The Four Actions Framework A new value curve Eliminate the factors the industry takes for granted Raise factors well above industries standard Reduce factors well below industries standard Create new factors never before offered in the industry